My recent post on the Efficient Market Hypothesis brought about the usual pushback from “passive” index fund advocates. As an advocate of low fee indexing I find this debate incredibly [ … ]
I noticed Noah Smith and John Authers on Twitter discussing how great the Efficient Market Hypothesis is because it explains why indexing works. I responded saying that the EMH really has [ … ]
I’ve always been bothered by the notion of “factor investing”. In case you don’t know, factor investing is derived from Eugene Fama’s various factor models (which have expanded over time [ … ]
John Bogle presented at this year’s Grant’s Spring Conference and made the argument for indexing as the way forward for investors. You can find his presentation slides here. Jim Grant [ … ]
I always say historical returns are always a better gauge of possible risks than they are of future returns investors can expect. It’s very easy to look back at past market performance and assume it would have been easy to earn those return numbers. Investors are much better off figuring out ways to earn as much of the performance from the market or fund returns going forward by reducing commissions, fees, taxes and unnecessary portfolio turnover.
Jason Zweig has a great article in the Journal this week about Ben Graham and indexing. He says that Ben Graham would have supported indexing. And yes, Graham didn’t say [ … ]
My recent Three Things post on market efficiency caused quite a stir in my email inbox. For instance, someone writes in: “Fama and the EMHers are being proven right by [ … ]
The recent attacks on Charles Schwab from Betterment and WealthFront seem to prove a disturbing reality – many advisors simply don’t know what “cash” in a portfolio really is and its necessarily positive aspects.
The dirtiest trend on Wall Street these days isn’t hedge funds or ponzi schemes. It’s high fee “passive indexers” who are passing themselves off as something different from “active managers”. I’ve [ … ]